'Price signalling’ amendments to the Competition and Consumer Act 2010 (Cth): A principled response to the problem of tacit collusion?

Kathryn Tomasic
(2012) 19 Competition and Consumer Law Journal 176

Abstract

'The Commonwealth Parliament recently passed amendments to the Competition and Consumer Act 2010 (Cth) prohibiting certain forms of information disclosure, or ‘price signalling’.This article critically assesses the amendments in light of economic theory and international practice. It argues that the amendments lack a cogent economic rationale and do not adequately distinguish between pro-competitive communications and anti-competitive conduct. They therefore have the potential for significant overreach; they are also likely to be inadequate to prevent collusion. Although the amendments have been portrayed as bringing Australian law ‘into line’ with international practice, the new prohibitions are considerably more restrictive than analogous laws in European Union and the United States.'

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